We know there is one indiscriminate non-economic buyer in the US equity markets - the entirely ignorant of valuation concerns, funded with record high leverage, corporate buyback machine [3]. But who is selling to them? Once again, as BofAML notes, institutional clients are net sellers of US equities since Mid-April (and are cumulative net sellers year-to-date). So do you chase the non-economic float-shrinkers... or the large professional investors?
Now you know... who's selling to you when you are BTFATHing...
[4]
It's been a while...
[5]
Last week - as stocks soared, it was institutional clients who were piling out of stocks... and retail/private clients piling in...
[6]
As BAML notes, last week, during which the S&P 500 was up 2% and reached a new all-time high of 1900, BofAML clients were net sellers of US stocks for the second consecutive week, in the amount of $286mn.
Source: BofAML